PNM Resources (PNM) has reported an 8.65 percent rise in profit for the quarter ended Jun. 30, 2015. The company has earned $31.80 million, or $0.40 a share in the quarter, compared with $29.27 million, or $0.36 a share for the same period last year.
Revenue during the quarter went up marginally by 1.94 percent to $352.89 million from $346.16 million in the previous year period. Gross margin for the quarter contracted 15 basis points over the previous year period to 54.99 percent. Total expenses were 79.48 percent of quarterly revenues, up from 79.40 percent for the same period last year. That has resulted in a contraction of 8 basis points in operating margin to 20.52 percent.
Operating income for the quarter was $72.41 million, compared with $71.30 million in the previous year period.
"PNM Resources is focused on serving our customers and improving our system," said Pat Vincent-Collawn, PNM Resources' chairman, president and chief executive officer. "In the second quarter, the company continued to perform as expected and remains on track. Strong numbers in Texas helped maintain our momentum, while in New Mexico we are successfully meeting the challenges of a still soft economy. In the regulatory proceeding on the plan for San Juan Generating Station, PNM expects to deliver the remaining signatures on the restructuring agreement and testimony later today."
Operating cash flow declines
PNM Resources has generated cash of $109.67 million from operating activities during the first half, down 11.41 percent or $14.13 million, when compared with the last year period. The company has spent $216.46 million cash to meet investing activities during the first six months as against cash outgo of $151.13 million in the last year period.
Cash flow from financing activities was $84.92 million for the first six months, up 130.11 percent or $48.02 million, when compared with the last year period.
Cash and cash equivalents stood at $6.40 million as on Jun. 30, 2015, down 47.13 percent or $5.71 million from $12.11 million on Jun. 30, 2014.
Working capital remains negative
Working capital of PNM Resources was negative $291.04 million on Jun. 30, 2015 compared with negative $40.04 million on Jun. 30, 2014. Current ratio was at 0.58 as on Jun. 30, 2015, down from 0.92 on Jun. 30, 2014.
Cash conversion cycle (CCC) has decreased to 35 days for the quarter from 43 days for the last year period. Days sales outstanding went down to 50 days for the quarter compared with 51 days for the same period last year.
Days inventory outstanding has increased to 40 days for the quarter compared with 36 days for the previous year period. At the same time, days payable outstanding went up to 55 days for the quarter from 44 for the same period last year.
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